Two different things get taken out of a German trainee’s pay, and articles about “Ausbildung taxes” often blur them together: mandatory social insurance contributions (which nearly everyone pays, and which fund your own health cover and pension) and Lohnsteuer, Germany’s payroll income tax (which most first- and second-year trainees end up paying little or none of). Here’s how each actually works.
The tax-free threshold most trainees fall under
Germany doesn’t tax income below a set annual threshold — the Grundfreibetrag. For 2026, this is €12,348 for a single person, confirmed directly in Section 32a of the Einkommensteuergesetz (Income Tax Act). Any income up to that amount in a calendar year is tax-free.
Compare that to actual training pay (see our full salary breakdown):
| Training year (statutory minimum, 2026) | Monthly | Annualised | Below €12,348 threshold? |
|---|---|---|---|
| Year 1 | €724 | €8,688 | Yes |
| Year 2 | €854 | €10,248 | Yes |
| Year 3 | €977 | €11,724 | Yes |
| Year 4 | €1,014 | €12,168 | Yes (just) |
At the statutory minimum wage, no training year’s annual pay crosses the threshold — so trainees on minimum pay owe no Lohnsteuer at all. The picture changes if you’re earning the collectively-bargained average of €1,209/month (€14,508/year), which does exceed the threshold, meaning a modest amount of Lohnsteuer applies. Even then, the tax is only charged on the portion of income above the threshold, not on the whole salary, and a further standard employee allowance reduces taxable income before that calculation — so the actual monthly amount withheld is small relative to gross pay.
Tax classes (Steuerklassen): which one applies to you
Germany assigns every employee a Steuerklasse that determines how much Lohnsteuer is withheld monthly (it’s reconciled against your actual annual liability at tax return time). As a single trainee with no dependents, you’ll almost always be placed in Steuerklasse I, which uses the standard single-person basic allowance of €12,348. Steuerklasse I applies to unmarried, divorced, or widowed employees; married couples can be assigned Steuerklasses III/V or IV/IV instead, which isn’t relevant for most incoming apprentices arriving on a training visa.
Why “Lohnsteuer” and “net pay” aren’t the same deduction
Even at €0 Lohnsteuer, your gross pay is not what lands in your account. Mandatory social insurance — health, pension, unemployment and long-term care insurance — is deducted regardless of whether you owe any income tax, and typically totals around 21–22% of gross pay for a childless trainee over 23. We’ve broken these out with sourced rates in our articles on hidden costs during Ausbildung and monthly savings, which show the full net-pay arithmetic.
If too much Lohnsteuer is withheld
Because monthly withholding is calculated on an annualised assumption, and many trainees’ actual annual income sits close to or under the Grundfreibetrag, it’s common for trainees who did have some tax withheld to be entitled to a refund by filing a German income tax return (Einkommensteuererklärung) after the tax year ends. This isn’t automatic — you generally need to file for it.
The practical takeaway
Budget your monthly cashflow around your net-of-social-insurance pay first, since that deduction is near-certain. Don’t assume a large Lohnsteuer bite on top of it — for most apprentices in their first two or three years, especially on or near the statutory minimum, Lohnsteuer will be zero or close to it. If your specific contract pays at or above the collectively-bargained average, expect a modest monthly amount, and check whether you’re due a refund at year-end.
See our Ausbildung programmes page for current openings, or contact us with questions about your specific contract.
Where this comes from
- Tax-free threshold (Grundfreibetrag) 2026: Section 32a, Einkommensteuergesetz (EStG): gesetze-im-internet.de
- Statutory minimum training pay 2026: BIBB: bibb.de
- Collectively-bargained average training pay 2025: BIBB: bibb.de
